*** NZD continued to come under pressure on....>

KIWI: *** NZD continued to come under pressure on Tuesday, with a better than

exp. WMP auction result & an upgrade to Fonterra's milk price forecast doing

little to support the kiwi after the NZDUSD's 200-DMA gave way on Tuesday.

- NZDUSD last trades at 0.7175, with initial focus on the 55-WMA at 0.7137 and

then the 100-WMA at 0.7122. To the upside, initial resistance through the figure

lies at 0.7205, while the the 55-DMA currently sits at 0.7279.

- As a reminder the RBNZ will convene on Thursday, no change is expected, with

more focus on the upcoming release of the Bank's new PTA (expected within the

next couple of weeks).

- This will be Spencer's final meeting as interim RBNZ Gov. so analysts do not

expect any fireworks. Markets currently price a ~30% chance of a hike by the end

of the Nov meeting, while the 'big 4' banks do not expect a hike until some

point in 2019. The NZ-US 10-Year yield differential has recently crept in to

negative territory, owing to the RBNZ's steady stance.